Troy Caruso, the owner and chief executive officer of a commercial construction and contracting company in New York, was arrested this morning in Melville, New York, for allegedly bribing a senior project manager at a Fortune 500 real estate services firm to award his company contracting work.
Caruso, along with his senior executive John Nolan, was charged with participating in a scheme to bribe a senior project manager at a Fortune 500 real estate services firm in order to obtain contracting work. The two men are expected to be presented in federal court in Manhattan later today.
According to the allegations in the Indictment, from at least in or about February 2021, up to and including in or about September 2023, Caruso and Nolan agreed to pay and did pay kickbacks to an employee of a global and publicly traded commercial real estate services company (the “Real Estate Firm”) in exchange for assistance and preferential treatment so that the Contracting Company would be awarded projects managed by the Real Estate Firm (the “Kickback Scheme”).
In or about March 2021, Caruso and Nolan were introduced by an individual (“CC-1”) to a senior project manager at the Real Estate Firm (“CC-2”). CC-2 managed the process by which contracting companies bid for and were awarded contracts to work on construction projects for various of the Real Estate Firm’s clients. Beginning in or about March 2021 because of the Kickback Scheme, CC-2 took a series of actions CC-2 otherwise would not have taken to ensure that the Contracting Company was awarded a pre-construction contract and a construction contract relating to a certain project (“Project-1”), which was managed by the Real Estate Firm on behalf of its client, a health services business that provides hospital, medical, and other health services to patients.
For example, CC-2 ensured that the Contracting Company was on the Real Estate Firm’s “bid list” so that it could submit bids relating to Project-1 that it otherwise could not have submitted. CC-2 also provided non-public information to Caruso and Nolan about the bidding process and recommended the Contracting Company for both the pre-construction contract and the construction contract relating to Project-1. As a result of the Kickback Scheme and CC-2’s actions, the Contracting Company was awarded the pre-construction and construction contracts for Project-1, the latter of which was valued at approximately $3.55 million (to be paid to the Contracting Company).
In exchange for CC-2’s assistance and preferential treatment, Caruso and Nolan agreed to pay kickbacks to CC-2 in the amount of approximately one percent of the construction value of any project managed by the Real Estate Firm that resulted in a contract award to the Contracting Company. Accordingly, Caruso and Nolan agreed to pay CC-2 approximately $35,500 for Project-1 and ultimately paid CC-2 approximately $33,000 in kickbacks for CC-2’s assistance on Project-1. Most of these payments were made in cash at locations around New York City.
The exact criminal charges against Caruso and Nolan are not specified in the press release. However, the charges are likely related to bribery and corruption. The case is ongoing, and it is unclear what the outcome will be. If convicted, Caruso and Nolan could face significant prison time and fines.
Related Federal Cases
- Perry Joyner, Bribery and Attempted Assault, New York 2020 · New York
- Thomas David Carruth, Bribery, Obstruction of Justice, Honest Services Wire Fraud, Arkansas 2023 · Arkansas
- Anthony Sabaini, Bribery, Tax Evasion, Structuring Financial Transactions, Theft, Illinois 2023 · Arkansas
- Edward Mullins, Embezzlement, New York 2023 · New York
- Maximiliano Davila Perez, Running Cartel Operations, New York NY, 2024 · Georgia
Key Facts
- State: New York
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
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